Michigan Democrats aim to reverse GOP tax policies (with video)

Michigan Democrats want to reinstate tax credits for individuals, boost funding for education and do away with higher taxes on pensions.

State Rep. Tim Greimel, an Auburn Hills Democrat, unveiled Democrats’ budget priorities and a way to pay for them Monday — while conceding they have little chance of passage in a Republican-controlled Legislature.

Republican were quick to dismiss Democrats’ proposals as an “unbalanced budget based on faulty assumptions.”

“We’re proposing a complete repeal of the pension tax, a complete restoration of the homestead tax credit and the child tax deduction, and a substantial increase in the earned income tax credit to 11 percent of the federal earned income tax credit,” Greimel said. “In addition, we are proposing a much higher level of investment in education at all levels.

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“Unfortunately, as long as Republicans are in control of the state Legislature, there probably is relatively little chance of these proposals passing,” he said. “After all, it’s essentially the same Legislature that last session that enacted these huge tax increases and that cut about $2 billion in funding for education.”

Democrats propose:

• $781.8 million in middle-class tax relief from the repeal of the senior tax, restoration of the $600 per-child deduction, fully restoring the homestead property tax credit and phasing back in the earned income tax credit.

• Restoring $537 million to Michigan classrooms, including $65 million for early childhood education.

• Spending $37.5 million on higher education.

• $50 million for film incentives, and $20 million for brownfield redevelopment and historic preservation.

• $62.4 million for public safety and local services, $4 million for women’s health, and $16 million for veterans services.

Democrats want to pay for the plan with $115 from the Michigan Economic Development Corporation, $206 million from accepting federal money for Medicaid expansion, $200 million by eliminating waste through audits, $300 million from cost-effective vendor contracts, and $158 million from the state’s budget stabilization fund.

Republicans countered that Democrats were just trying to “score political points” with the 2014 election just around the corner.

Up for election then are Gov. Rick Snyder, Lt. Gov. Brian Calley, Michigan Secretary of State Ruth Johnson and Michigan Attorney General Bill Schuette, all Republicans.

Also on the 2014 ballot are all 110 members of the state House and 38 seats in the state Senate.

“Overall, the Democrats took weeks to concoct an unbalanced budget based on faulty assumptions to pay for a policy plan that maybe wasn’t really their policy plan,” said Ari Adler, spokesman for Michigan House Republicans. “The Democrats’ budget proposal announced today is more than $500 million in the hole, and that’s being generous, since much of their “revenue” is based on unrealistic sources.”